Oil

Oil and gas company Santos (STO) has confirmed that it will develop the Fletcher Finucane oil project in Carnarvon Basin off the northwest coast of Western Australia worth $490 million. Santos will contribute $236 million of the capital expenditure of the project as its venture participants Kufpec Australia and JX Nippol Oil and Gas will share for the remaining costs.

The Chinese energy companies continue their quest for securing oil and gas supply for the fast growing economy of the country with Sinopec on the move to achieve $1 billion worth of stake in the Queensland gas project of Santos Limited (STO). Sinopec is one of the three major China based energy companies that is currently focusing on the global sources for resources like oil and gas.

Arrow Energy (AOE), one of the renowned coal seam gas producer and explorer of Australia with a current market capitalisation of over AUS$2 billion with resources in south and central Queensland and northern New South Wales was at the number winning company of the 10th week in ASX100 with a gain of 49.4 percent or $1.72 to its stock price closing the week at $5.20 (market capitalisation $3808.4 million).

With the recent oil price highs comes consequences... Higher Prices for Airline Tickets

Soaring oil prices over the past few weeks are set to escalte Australian Petrol Prices, set to hit $1.50 in the next few months

Petrol prices are tipped to return to $1.30 a litre as the Australian dollar loses value as a result of the rising US interest rates. The Aussie has LOST about 3 cents in a little over a fortnight. Watch out for all imported goods to rise too... on the flip side exporters are celebrating, particularly those in the mining sector. Oil is currently around $66 a barrel, it was around $58 a barrel just a few weeks ago.

With the fall in Oil and Gold recently some traders have probably undertaken some profit taking strategies. There is still Hope for the Resources sector - the fall was governed by no more than "Fear" and "Greed". There may be more volatility in the forthcoming market sessions with fingers pointing to an amount of speculative money that was driving up oil, gold and base metals prices in the beginning of 2006. GSJB Were reckons not to lose hope on the resources sector.

Yes! Book your Road Trips Now. Oil prices have fallen sharply overnight as market traders' concerns eased over the stalemate over Iran's nuclear energy program and the market is awaiting US supply data. New York light sweet crude (delivery March '06) fell $US2.02 to close at $US63.00 per barrel. In London, the price of Brent North Sea crude for March delivery dropped $US1.77 to $US61.56 per barrel in closing trade. Worries of supply disruption have eased but still not dismissed - if ever the situation escalates quickly, expect the oil prices to jump.

Oil Prices rose to a 3 month highs in London and New York each market quoting a price over $US 64 and $US 65 respectively because of rising geopolitical tensions in Iran and Nigeria.

New York's main contract, light sweet crude for delivery in February, jumped $US1.46 to $US65.38 per barrel in electronic dealing. It had earlier climbed to $US65.53 - the highest since October 3, 2005.

In London, the price of Brent North Sea crude for March delivery rose US95¢ to $US64.13 per barrel. The February contract had expired on Monday at $US62.93 per barrel.

World oil prices surged to the highest levels in almost three months after Russia's energy row with neighbour Ukraine disrupted gas supplies across Europe, hit also by cold weather.

New York's main contract, light sweet crude for delivery in February, rocketed $US1.96 to $US63 per barrel in pit deals, compared with Friday's close before the long New Year holiday weekend.